A bill that would authorize the State Treasurer to block banks with policies against investments in fossil fuel industries like coal and natural gas passed the Senate on Thursday.
Senate Bill 262 would restrict state banking contracts with any bank or investment group that refuses to deal with coal or natural gas companies or terminates contracts with existing fossil fuel companies as a way to punish them for engaging in extractive industries.
The legislation would require the State Treasurer to create and maintain a list of restricted financial institutions annually. The list must be made public with written notice to the financial institutions informing them they are on the restricted list.
Under the proposed law, any banking institution on the restricted list would be unable to enter into new banking contracts with the state or remain in current contracts. Banks that can prove they are not or are no longer boycotting the energy sector would be removed from the list.
The bill includes an exemption for routine business purposes, such as final loan decisions to energy companies. The bill also has no impact on any bank that deals with state pension accounts or any accounts overseen by the state’s Investment Management Board.
The legislation now heads to the House of Delegates for consideration.
The Senate is adjourned until tomorrow, Jan. 28 at 9 a.m.
Education will meet at 2 p.m. in 451M.
Government Organization will meet at 2 p.m. in 208W.
Judiciary will meet at 3 p.m. in 208W.
Finance will meet at 3 p.m. in 451M.
